DoD's $27.2M Communication Equipment Repair Contract with Cubic Global Defense Faces Scrutiny
Contract Overview
Contract Amount: $27,214,876 ($27.2M)
Contractor: Cubic Global Defense, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-08-11
End Date: 2013-06-30
Contract Duration: 1,784 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ADVISOR TRAINING GROUP (ATG) TAS::17 1804::TAS
Place of Performance
Location: OLYMPIA, THURSTON County, WASHINGTON, 98501
Plain-Language Summary
Department of Defense obligated $27.2 million to CUBIC GLOBAL DEFENSE, INC. for work described as: ADVISOR TRAINING GROUP (ATG) TAS::17 1804::TAS Key points: 1. Contract awarded via full and open competition, suggesting potential for competitive pricing. 2. The $27.2M value over 5 years indicates a significant investment in defense communication maintenance. 3. Lack of small business participation raises concerns about broader economic impact. 4. The contract falls within the IT and Defense sectors, requiring specialized repair services.
Value Assessment
Rating: fair
The contract's total value of $27.2M over approximately 5 years averages around $5.4M annually. Benchmarking against similar communication equipment repair contracts is difficult without specific service details, but this appears to be a substantial commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. However, the specific price discovery mechanisms and the number of bids received are not detailed here.
Taxpayer Impact: The $27.2M expenditure represents taxpayer funds allocated to defense readiness. While competition aims for efficiency, the overall value necessitates careful monitoring to ensure value for money.
Public Impact
Ensures operational readiness of critical communication equipment for the Department of Defense. Supports a major defense contractor, potentially impacting jobs within that company and its supply chain. The lack of small business involvement means limited direct economic benefit to smaller enterprises in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation
- Long contract duration (5 years)
Positive Signals
- Awarded under full and open competition
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Defense and IT sectors, specifically focusing on the repair and maintenance of communication equipment. Spending benchmarks in this area are highly variable based on the complexity and criticality of the equipment being serviced.
Small Business Impact
The contract explicitly states no small business participation (sb: false). This indicates that the prime contractor, Cubic Global Defense, Inc., is handling the entirety of the work, potentially missing opportunities to leverage specialized small business capabilities.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The firm fixed price nature provides some cost certainty, but ongoing performance monitoring is crucial to ensure quality and timely delivery.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of small business participation
- Potential for equipment obsolescence over the contract duration
- Limited detail on specific services and equipment
- No information on the number of bids received
Tags
communication-equipment-repair-and-maint, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.2 million to CUBIC GLOBAL DEFENSE, INC.. ADVISOR TRAINING GROUP (ATG) TAS::17 1804::TAS
Who is the contractor on this award?
The obligated recipient is CUBIC GLOBAL DEFENSE, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $27.2 million.
What is the period of performance?
Start: 2008-08-11. End: 2013-06-30.
What was the competitive landscape like for this 'full and open' contract, and how many bids were received?
While the contract was awarded under 'full and open competition,' the provided data does not specify the number of bids received or details about the bidding process. Understanding the level of competition is crucial to assess if the pricing truly reflects market value and to ensure taxpayer funds are used efficiently.
What specific communication equipment is covered under this $27.2M contract, and what is the risk of obsolescence?
The data identifies the North American Industry Classification System (NAICS) code as 811213 (Communication Equipment Repair and Maintenance) but lacks specifics on the actual equipment. Given the contract's duration (2008-2013), there's a inherent risk of technological obsolescence for older communication systems, potentially impacting the contract's long-term value and effectiveness.
How does the annual spending of approximately $5.4M compare to industry benchmarks for similar communication equipment repair services?
Without detailed specifications of the communication equipment and the scope of repair services, a direct comparison to industry benchmarks is challenging. The $5.4M annual spend appears substantial, necessitating a thorough review of service level agreements and performance metrics to confirm it aligns with fair market value and operational needs.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785408R8006
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cubic Corporation (UEI: 008382293)
Address: 4550 3RD AVE SE, LACEY, WA, 98503
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $40,536,952
Exercised Options: $27,214,876
Current Obligation: $27,214,876
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-08-11
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2018-11-01
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